Historical Data Representing Consumption and Disposable Income Reveals That

question 59

Multiple Choice

Historical data representing consumption and disposable income reveals that

• A)during the 1930s, U.S.saving was at a high level.
• B)U.S.citizens increased saving during World War II.
• C)there is no systematic relationship between the two.
• D)consumption rises faster than disposable income during recessions.

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Definitions:

Factory Depreciation

The systematic allocation of the cost of physical assets used in the manufacturing process over their useful lives.

Direct Labour

The cost of wages for employees directly involved in the production of goods or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the production process begins.

Direct Labour Costs

Expenses related to employees who are directly involved in the production of goods or services.